The Premier Source for Microfinance Data and Analysis

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Microfinance Information Exchange

Measuring Social PerformanceAn Introduction to MIX’s SP Program May 3, 2013

This presentation is the proprietary and/or confidential information of MIX, and all rights are reserved by MIX. Any dissemination, distribution or copying of this presentation without MIX’s prior written permission is strictly prohibited.

Contents of the Presentation

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MIX Basics

MFI

Donors and Investors

Raters

MFI Networks

Regulators

What is MIX?

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This presentation is the proprietary and/or confidential information of MIX, and all rights are reserved by MIX. Any dissemination, distribution or copying of this presentation without MIX’s prior written permission is strictly prohibited.

• Relevant

• Easy to collect

• Verifiable by third parties

• Publicly available

Raters

Donors and Investors MFI Regulators

MFI

MFI Networks

MFI Networks

What Makes a Good SP Indicator?

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MIX’s SP Indicator Categories

1. Mission and social goals2. Governance3. Range of products and services4. Client outreach by lending methodology5. Borrower retention6. Social responsibility to clients7. Transparency of costs of services to clients8. Human resources and staff incentives9. Employment creation and enterprises financed10. Social responsibility to the environment11. Poverty outreach

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2 MIX indicators

5 MIX indicators

5 MIX indicators

9 MIX indicators

4 MIX indicators

UNDER CONSTRUCTI

ON

!

MIX Indicators Align with SPTF Standards

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Market Coverage* of SP Reporters (FY11)

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EAP(n=97)

ECA(n=191)

LAC(n=280)

MENA(n=32)

SSA(n=184)

South Asia(n=190)

Total(n=974)

Bank(n=64) 96% 88% 88% 19% 84% 14% 69%

Credit Union / Cooperative(n=162)

27% 96% 60% -- 66% 51% 59%

NBFI(n=311) 98% 99% 68% 98% 73% 87% 83%

NGO(n=355) 76% 96% 95% 57% 67% 84% 81%

Rural Bank(n=28) 40% -- -- -- -- 100% 63%

Other(n=24) 88% 100% 79% 69% 100% 23% 75%

Unknown(n=30) -- 100% -- -- -- -- 24%

Total(n=974) 87% 94% 80% 60% 73% 74% 78%

*Market coverage = % of all FY11 active borrowers on MIX Market served by MFIs that have reported SP profile data (total FY11 active borrowers on MM = 94M)

This presentation is the proprietary and/or confidential information of MIX, and all rights are reserved by MIX. Any dissemination, distribution or copying of this presentation without MIX’s prior written permission is strictly prohibited.

Do MFIs View MF in Terms of Poverty Reduction?

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Do MFIs Track Outcomes Related to their Goals?

9*Proxy outcome indicator (women’s empowerment services outreach)

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Focus on Poverty Data

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CountryPercent of

clients below NPL (median)

Percent of population below NPL*

Bolivia (n=3) 37% 51%

Colombia (n=3) 31% 34%

Ecuador (n=2) 21% 28%

Guatemala (n=2) 6% 54%

Peru (n=4) 27% 28%

FY11 PPI Data(restricted to countries with more than one MFI reporting)

*Source: World Bank (most recent year available)

161 MFIs have reported at least one year of client poverty data and 78 have reported FY11 poverty data

The most common measurement methods used for reporting are the PPI, PCH income, and custom poverty scorecards

Only 6 MFIs were able to report how many of their clients moved out of poverty in FY11

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Concluding Remarks

Social performance reporting to MIX is becoming the norm and a set of industry standards for SPM do exist

Poverty reduction remains one of the most popular social goals of MFIs; however, MFIs cite financial inclusion even more frequently (except in S. Asia and SSA)

Systematic tracking and reporting of social outcomes leaves much to be desired, meaning that claims about microfinance’s impact and potential remain largely anecdotal

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MIX partners with a dedicated group of industry leaders:

MIX Global and Project Partners

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